Mphasis Posts Best Second Quarter in Five Years as Revenue Climbs 3.2% to $486 Million

Mphasis reported a 3.2% sequential rise in revenue to $486 million for the July-September quarter, its best second quarter in five years, TradingView reported on November 7. The Blackstone-owned IT services company said almost three-fourths of its incremental revenue came from financial institutions.

Mphasis Lifts Full-Year Revenue Guidance

Mphasis, founded in 1992 and headquartered in Bangalore, provides technology services to enterprise clients and sits in the $1 billion to $5 billion revenue band, according to company records. Financial institutions account for more than half of its overall business.

"We now expect revenue growth in the low double-digits range for the full year," Nitin Rakesh, chief executive officer of Mphasis, said during the post-earnings analyst call on November 6. "Last quarter, our guidance was high single digit to low double digits. We are doing so despite an uncertain macro environment because it rests on results already delivered and on visibility we can see in the pipeline and the backlog."

Operating margin at Mphasis held at 14.8%. Among mid-sized peers, Coforge was the fastest-growing tech services firm in the quarter, with revenue up 10.1% to $652 million, while Hexaware Technologies was the slowest at 1.6% to $412 million. Coforge raised its full-year margin guidance by 50 basis points to 16%.

"This improvement in margin, at a time when our industry faces acute pricing pressure, is driven by our execution ethos," Sudhir Singh, chief executive officer of Coforge, said during a post-earnings conference call on October 23. "AI is breaking the link between scale and margin leadership for the tech services industry."

Mphasis Deal Wins and AI Investment

Mphasis has a record $2.1 billion in total contract value wins, according to akta.pro company records, with deal volume up 68% in FY26 versus FY25 and average deal size growing from $52 million to $74 million. The company launched Mphasis Tria, an Enterprise Agency Platform for orchestrating AI agents and human workflows, in May 2026, backed by about $27 million in investment, roughly 1.5% of FY26 revenue. Mphasis also established an AI Hub with the Indian School of Business that month and hired Richard Miller as Global Head of Insurance.

Mphasis's Quarter in Context

On November 2, Moneycontrol.com reported that Blackstone's promoter entities received Rs 2,909 crore in gross dividends from Mphasis for FY20 to FY25, with an estimated Rs 361 crore for FY26, totaling about Rs 3,270 crore, while operating cash flows fell 43% from FY24 to FY26. On October 28, Machine Maker reported that Mphasis received SBTi validation for its greenhouse gas emissions reduction targets, using FY2024-25 as a baseline. On October 22, citybiz reported that Mphasis signed a 10-year extension and expansion at Rudin's 41 Madison in New York, adding the entire 36th floor to its existing 35th-floor space for a total footprint of 27,709 square feet.

What Comes Next for Mphasis

Mphasis shares closed 0.6% lower on the BSE on Friday, while Sonata Software shares closed 0.9% lower. Coforge shares jumped 4.9% a day after its earnings.